KARACHI: The Directorate of Post Clearance Audit (PCA) Karachi has served an Audit Observation on M/s R.J Corporation, Karachi for claiming inadmissible benefit of concessionary regime.
Audit of import data found that M/s R.J Corporation, Karachi imported goods declared to be “LED panel lights, led down light, SMD panel light, LED flood light outdoor and declared PCT heading 9405.1090 through MCC Appraisement (West) and claimed the benefits of Fifth Schedule (Customs Duty) Part I-24, Sixth Schedule (Sales Tax)-15.2-25/06/20 and Income Tax 0% CL77 PT-IV 2nd Schedule ITO-10.
The exemptions are only available to SMD, LEDs with or without ballast with fittings and fixtures for promotion of the renewable energy technologies as per notification mentioned above.
The images of the import documents and packing of the goods available in the system clearly shows that the imported items are operative / works at alternating current of ranges AC 85-265 volts which is the normal thermal / hydel power sources normally produced and used in Pakistan National Grid System.
It is an undeniable proof that the imported goods are not meant for to work / operate with the renewable energy sources like Solar Energy or Wind Energy. Therefore, the concessions under the claimed notifications are not available to the subject imports.
M/s R.J Corporation, Karachi is required to pay a total of duty/taxes of Rs5.957 million.